Key facts
- New Zealand economists have lowered their inflation forecasts.
- Fuel prices and airfares decreased in May.
- Governments globally are expected to face high borrowing costs through year-end.
- A fragile Middle East truce has contributed to lower energy prices and eased inflation fears.
New Zealand economists have lowered their inflation forecasts following a report indicating that fuel prices and airfares decreased in May. This reduction occurred even before the potential impact of peace in the Middle East was factored in. Governments worldwide are anticipated to experience high borrowing costs through the end of the year, despite a fragile Middle East truce that has reduced energy prices and eased inflationary concerns.